Ford CEO Jim Farley’s 2023 compensation rises to $26.5M

Ford CEO Jim Farley’s total compensation jumped 26 percent last year to $26,470,033, despite falling short of his potential bonus target, according to the company’s annual proxy statement.

Compensation for four of Ford’s top five named executives rose from the prior year, largely because of revamped stock awards that estimate the hypothetical value of future payouts, according to a spokesperson. The automaker’s stock awards are now exclusively tied to how Ford performs against other companies in returning value to shareholders.

Farley’s base salary remained unchanged at $1.7 million, while his nonequity incentives fell slightly as he hit 71 percent of his annual bonus plan award target. The automaker did not break down specifically where Farley fell short, although it said that 40 percent of this year’s bonus criteria was tied to adjusted earnings before interest and taxes, 30 percent was tied to quality, 20 percent was tied to electric vehicle growth and 10 percent was tied to value-added services.

Farley earned nearly $21 million in total compensation for 2022.

UAW President Shawn Fain, an outspoken critic of what he views as excessive management compensation, blasted Farley’s pay package.

“Just a few weeks ago Farley was crying to the press about how the UAW’s record contracts were forcing the company to rethink where they build their vehicles, but now they have no problem finding the money to give him a 26 percent pay raise to $26.5 million a year,” Fain said in a UAW statement. “Let’s be clear: this is corporate greed, plain and simple.”

Ford said the ratio of Farley’s compensation compared to the median of all other Ford employees was 312-to-1. The median annual total compensation for all Ford employees besides Farley was $84,829, up $10,000 from a year ago.

The company’s executive pay disclosures follow a year in which Ford posted $4.3 billion in net income but struggled again with persistent quality issues. Executive Chair Bill Ford, in a letter to shareholders that was part of the proxy, said the company delivered a “solid year” in 2023 and that it was making progress on quality and reducing costs.

“Our 2023 results underscore the potential of our plan, our leadership, and our people,” he said. “Looking ahead, we have an opportunity to deliver a very strong 2024 and differentiate Ford like never before.”

Ford earned $20.6 million last year, up from $17.3 million in 2022.

CFO John Lawler made $10 million last year, up from $8.9 million, and Doug Field, chief EV, digital and design officer, earned $15.3 million, up from $15.1 million last year.

Peter Stern, who was hired in August, collected $8.3 million.

Farley’s compensation trailed that of Stellantis CEO Carlos Tavares, which jumped 56 percent last year to roughly $40 million. General Motors has not yet released CEO Mary Barra’s 2023 compensation, although she received nearly $29 million in 2022.

The automaker will hold its annual virtual shareholders meeting May 9, according to the filing.

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